Indiana University Purdue University Indianapolis (IUPUI) DIVE (Discovery, Innovation, and Ventures Enterprise) The DIVE (Discovery, Innovation and Ventures Enterprise) class is a three-credit class experience that teams IU Kelley Evening MBA students with new and growing ventures. This select group of students attends a session where ventures pitch their concepts and needs as they would to a potential investor. Following student self-selection, student teams engage over four-to-six months to provide strategic analysis, business model development, market feasibility, and / or other support. In its ninth year, the program has allowed approximately 200 Kelley MBA students to work with over 50 ventures for the mutual of students, entrepreneurs, and venture community. DIVE is offered as part of the Entrepreneurship major within the Evening MBA Program at the IU Kelley School of Business, but also attracts finance, marketing, and other majors with an interest in venturing. The Evening MBA Program of the IU Kelley School is delivered in Indianapolis from the IUPUI campus, in the heart of the business and venture community. These students are almost all working (85%) or in dual degree programs (10%). Todd Saxton, Director, DIVE (Discovery, Innovation, and Ventures Enterprise)

1. Taking the DIVE:
IU Kelley Students and the
Venture Community
Todd Saxton
Associate Professor, Strategy and Entrepreneurship
Indiana Venture Faculty Fellow
Indiana University Kelley School of Business
President, Venture Club of Indiana

2. Entrepreneur next door…

3. Uncertainty versus Risk
• Risk is Probabilistic
– Known range of outcomes
– Known distribution
• Uncertainty? Both outcomes and probabilities unknown

4. Delivery versus
Discovery Skills
• Discovery Skills:
Associating
Questioning
Observing
Experimenting
Networking
• Delivery Skills:
Analyzing
Planning
Detail-oriented
implementing
Disciplined
Executing

5. Problem 1: The Brain Drain…
50% of first-year college graduates leave the state
(IU report, 2012)

6. Problem 2: The Valley of Death
Potential
Entrepreneurs
Launched Ventures,
Successful Financing,
IPOs
5-15 years
Valley of Death
90% plus fail to enter or navigate
the “Valley of Death”

7. The DIVE Solution…
Match talented MBA
students with
entrepreneurs to help
them navigate
uncertainty and build
student discovery skills

8. The DIVE Program…
• Discovery, Innovation, and Ventures Enterprise
• 10 years nurturing high-growth ventures and high-potential
entrepreneurs through the IU Kelley School of Business
– Hands-on experience: strategy, business planning, & market
research; UNCERTAINTY
– Top MBA education: curriculum tailored to entrepreneurs
– Average 20 student “DIVErs,” 5-7 projects/year
– 4-6 month duration
• 200+ IU grad students engaged, trained and matched with
ventures
– Kelley School of Business – MBA ( + MS, MD, PhD, JD)
– Highly talented graduate students working for credit and
experience

9. So What is Different?
• Outside normal school parameters (timing)
• Getting OUT OF THE BUILDING (location)
• Exposure to uncertainty (discovery skills)
• Pitch sessions for investment of TIME
• Self-managed with resources

10. DIVE Impact
• >50 local ventures supported
– IT (20)
– Life Sciences (15)
– Consumer Products (10)
– Returning Ventures (6)
• Ventures have raised over $20 million
• Jobs created, including for DIVErs
• Some DIVErs say NO to Ent!
• Others start ventures…

11. 3 Challenges… 1 Solution…
DIVE

12. • “The Kelley MBA
students have applied
critical thinking, thorough
research and creativity to
deliver value on some of
our key strategic
questions. This has
definitely helped with our
business planning and
go to market strategies. ”
• Joe Muldoon
CEO, FAST BioMedical
Entrepreneurs:

13. • “For Confluence
Pharmaceuticals, the DIVE
Program represented an
opportunity to lever motivated
and capable students… for a
large and complex project that
required a fresh build-from-
scratch approach using
research gathered from
numerous sources. Job well
done!”
• Steve Johns
CEO, Confluence
Pharmaceuticals
Entrepreneurs:

14. • “The DIVE students
bring diverse talents
and capabilities. Their
industry backgrounds
and technical
competencies offer a
fantastic resource for
assessing and
managing our portfolio
of venture investments.”
• Oscar Moralez
Managing Director, VisionTech
Angels
Investors:

15. • “Participating in the DIVE
Program helped enable me
to secure a new position with
my employer and… has
propelled my career forward
by approximately 10 years. I
highly recommend DIVE as
a way to get real world
experience that will serve
not only local ventures, but
also students’ careers and
lives.”
• Ben Pidgeon
MBA; Incoming President,
Venture Club of Indiana
DIVErs:

16. • “The DIVE program was
a key catalyst in my
realization that I can
make a tangible impact
on an organization and
help drive the direction
of its development.
Taking ownership over
my career has been
motivating and
invigorating.”
• Marc Yoder
MBA
DIVErs:

17. • “DIVE has given me a
wonderful opportunity to
taste the world of startups
and entrepreneurship,
without the enormous
personal and professional
risk that are often required
to do so. I’m so thankful to
have this early exposure
to ventures.”
• Julie Panzica
MBA
DIVErs:

18. Lessons Learned, DIVE Challenge
1. Identify a Champion
 Action and student oriented
 Research interest can be helpful
 Established relationships in venture community
2. Build Local Partnerships
 Entrepreneurs
 Investors
 Hubs of Venture Activity
3. Start Small—Build Credibility
4. Be Selective!
5. Fail Fast

19. Questions?
Todd Saxton
tsaxton@iu.edu